In response to the surging demand for Saga crypto smartphone, Solana Mobile is strategically pivoting to unveil a more affordable successor according to a Coindesk report.
Initially faced with challenges of gaining traction, the company aims to leverage the success of Saga’s unique features, such as the built-in crypto wallet, DApp store, and custom Android software, while introducing a new phone with different hardware specifications at a lower price.
This strategic move not only addresses market demands but also helps to position Solana Mobile to capture a broader audience interested in the intersection of smartphones and cryptocurrency.
Saga’s Rollercoaster Ride from Price Reductions to Token Surge
The Saga phone, initially priced at $1,000, encountered difficulties in the market. This prompted about a 30% slash in its price to $599.
However, in December, the demand for Saga soared unexpectedly due to an arbitrage opportunity linked to the 30 million Bonk tokens included with the phone. EBay, a multinational American e-commerce corporation, offered the Solana Saga phone for as much as $5,000, which is more than eight times the normal price.
The Solana-based memecoin, Bonk, experienced a parabolic surge, resulting in a sudden sell-out of the limited stock of 20,000 phones in the U.S. and EU.
Despite the subsequent decline in the Bonk token’s value, the unexpected success of Saga in December highlights the dynamic nature of the crypto market and its impact on hardware sales.
The Bonk Token Fever
The Bonk token, which spiked over 800% in December, had a peak value of $0.000035 on December 15, coinciding with the day the phones sold out.
A notable and unexpected increase in value occurred for BONK, drawing in degens looking to make the most of the opportunity. This induced a request for a Solana-compatible smartphone and the demand for BONK.
The initial value of the 30 million bonk tokens, which were initially worth a few dollars, rose to $1,140 at its peak—90% more than the device’s $599 cost—despite its subsequent 60% decrease, which is currently priced at $0.000014. On the other hand, the current value of bonk tokens is $420, which is less than the cost of the phone.
Impact on Solana Phone Sales
The ongoing enthusiasm over possible future airdrops for phone holders has spurred secondary sales of Saga phones on platforms like eBay to as high as $5,000, with bids as high as $3,200, despite the reduction in the bonk’s value.
The upcoming successor to the Saga smartphone aims to capitalize on this momentum by offering a more budget-friendly option while retaining essential crypto features. Last month, December 2023 saw an increase to 16.25 million addresses that were active per month on the Solana network from only around 10.46 million in November—a clear indication of the interest of consumers.